Regulatory Alerts2022-06-06
Law No. 2 of 2005 Regarding Combating Money Laundering
The General People's Committee of Libya issued Law No. 2 of 2005 to establish a comprehensive legal framework for combating money laundering by defining illicit funds, outlining criminal liability for both individuals and financial institutions, and prescribing corresponding imprisonment and fines. The legislation mandates the creation of a Financial Information Unit within the Central Bank to monitor suspicious transactions and requires all licensed financial and commercial entities to report irregularities while maintaining strict confidentiality. Furthermore, the law empowers the Governor and Public Prosecutor to freeze accounts, facilitates international judicial cooperation, and establishes a National Committee to oversee regulatory compliance and cross-border information exchange.